IMPORTANT POINT
Trainees under certified standing orders are excluded from the definition of 'employee' under the EPF Act unless they perform the same work as regular employees.

JUDGMENT :

D. K. Singh, J.

In these Writ Petitions, almost common questions of law and facts are involved. Therefore, the Writ Petitions were heard together and are being disposed of by a common judgment.

However, the facts of each Writ Petition are taken note of hereunder.

WPC(c) No.29166 of 2014

2. This Writ Petition has been filed by the petitioner company having its registered office at Kozhikode and a showroom at Malappuram. The company is engaged in the sale of jewellery and allied products. The establishment of the petitioner is covered under the Employees Provident Fund Scheme.

3. The petitioner had commenced business in the year 2007. It is the case of the company that at that time the petitioner establishment enrolled all eligible employees except trainees under the Employees Provident Fund Scheme and started remitting contributions for the enrolled employees. The petitioner’s standing orders were certified by the competent officer on Ist July 2011 under the provisions of the Industrial Employment (Standing Orders) Act, 1946.

4. The Enforcement Officer conducted an inspection and based on the report of the Enforcement Officer, the second respondent initiated proceedings under Section 7A of the Employees Provident Fund Act alleging non-payment of contribution in respect of the trainees engaged by the petitioner during the period July 2007 to September 2011. A show cause notice was issued to the petitioner to which the petitioner had filed a reply. The second respondent, the Assistant Provident Fund Commissioner, however, proceeded to assess the dues in respect of 46 trainees for the period from July 2007 to September 2011 and an order was passed for an amount of Rs. 11,12,070/- in respect of non-payment of contribution by the petitioner in Ext.P3 dated 15th June 2012.

5. The petitioner has challenged the said order by filing a statutory appeal before the first respondent. However, the first respondent had dismissed the appeal filed by the petitioner against the order dated 15th June 2012 passed by the second respondent vide order dated 8th April 2014 in Ext.P5. An order under Section 8F of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 has been issued by the second respondent to the third respondent on condition that on payment being made by the petitioner in compliance with the order, the petitioner would stand discharged from the liability in accordance with the provisions of clause (viii) of sub section-3 of section 8F of the Act. These orders are under challenge in this Writ Petition.

WPC No.30357 of 2021

6. The petitioner got incorporated as a private limited company on 19th June 2001. The petitioner company is engaged in the manufacture of gold ornaments, jewel ornaments and allied products and it is also supplying gold and jewel ornaments to other units of its group of companies. It is covered under the provisions of the Employees Provident Fund & Miscellaneous Provisions Act, 1952.

7. The petitioner claims to have enrolled all the eligible employees except trainees under the provident fund scheme from the date of commencement of its business. The petitioner’s standing orders under the provisions of the Industrial Employment (Standing Orders) Act, 1946 were certified and the standing orders came into force with effect from Ist January 2005.

8. The Enforcement Officer inspected the premises of the petitioner and based on the report of the Enforcement Officer, the first respondent issued a notice proposing to conduct an enquiry under Section 7A of the Act of 1952 in respect of non-payment of contribution by the petitioner for the trainees engaged by the petitioner. The petitioner submitted its reply and made submissions. However, the first respondent passed the order on Ist October 2015 holding that the petitioner is liable to make contribution in respect of the trainees under the provisions of the Act, 1952 and assessed an amount of Rs.23,62,920/- as outstanding dues for the period from 09/2014 to 03/20